Feb. 20, 2013

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A day after the Fort Collins City Council took the initial steps Tuesday to ban nearly all oil and natural gas exploration, production and hydraulic fracturing within the city, both the oil industry and Gov. John Hickenlooper’s office quickly responded, suggesting legal action against the city may be in the offing.

“We ardently hope that this ordinance will be defeated on second reading so there will not have to be discussions of going to court to allow an activity that the State Supreme Court has clearly stated cannot be banned within a city, county or municipality,” Colorado Oil and Gas Association CEO Tisha Schuller said in a statement Wednesday morning.

Hickenlooper spokesman Eric Brown said the state recognizes there are legitimate concerns about oil and gas development near communities, “but an outright ban violates private property rights and is illegal. A better approach is to have strict regulations to protect public health and safety. That’s what we have been focused on doing.”

“It’s premature to know what legal action may happen or how,” Brown said.

COGA spokesman Doug Flanders said Wednesday afternoon that a drilling ban in Fort Collins conflicts with the primacy of state government, and the proposed ban’s exemption of the city’s only operator, Black Diamond Minerals subsidiary Prospect Energy, doesn’t solve that problem.

“If the ban passes, COGA must assess the need for legal action and we will plan to do so,” Flanders said. “In the meantime, we continue to be available to work with the City Council on responsible and pragmatic solutions.”

“Many Coloradans know that hydraulic fracturing has been safely conducted in Colorado for more than 60 years,” Schuller said, adding that COGA acknowledges the risks and benefits associated with energy development.

The potential for new oil and gas production within the city of Fort Collins is considered “low-moderate,” Fort Collins Community Development Director Laurie Kadrich told the City Council on Tuesday night.

The council’s initial vote on the oil and gas drilling ban comes a week after state oil and gas regulators approved a 500-foot buffer zone between buildings and oil wells drilled after Aug. 1. The buffer zone is not absolute, however. Oil companies can apply for a variance or seek permission from nearby property owners to drill within that buffer zone.

The same day, an oil and gas well four miles east of Fort Collins spewed 84,000 gallons of oil-laced fracking flowback water for 30 hours onto a well pad 1,500 feet from the nearest home. It took at least 20 people to gain control of the well.

The Colorado Oil and Gas Conservation Commission is investigating the incident.